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ED issues third summons to Mallya

Saheli April 2, 2016 News Comments Off on ED issues third summons to Mallya

Vijay Mallya. Photo: Kamal Narang

The Enforcement Directorate (ED) on Saturday issued a third summons to business tycoon Vijay Mallya asking him appear by April 9 before its investigating officer (IO) in Mumbai, even as a conglomerate of banks are examining his proposal to pay Rs. 4000 crore to lenders of Kingfisher Airlines by September.

Mr. Mallya had, on Friday, sought time until May to depose before the ED in the money laundering case registered against him, in connection with the Rs. 900 crore IDBI loan fraud case, which is a subject of the CBI investigation.

The liquor baron had informed the ED that he wouldn’t be able to appear before the investigation officer in the money laundering case on April 2, as the second summons had demanded. In his communication to the ED, Mr. Mallya has also pointed out that he was engaged in an effort to settle the entire loan issue and it is being overseen by the Supreme Court, thus he would require more time, sources said.

He has sought time till May to appear before the ED, sources said. The IO may not accept the demand, they said.

The ED case under PMLA (Prevention of Money Laundering Act) was registered based on an FIR registered in 2015 by the CBI.

The developments comes even as a consortium of banks led by State Bank of India are examining Mr. Mallya’s proposal to pay Rs. 4000 crore to settle his loans. Defunct Kingfisher Airlines, United Breweries (Holdings) and Mr. Mallya had submitted to the Supreme Court on Wednesday that he was willing to pay Rs. 4000 crore out of the total loan of Rs. 6903 crore, and hundreds of crores interests and penalty on them.

A Bench comprising Justices Kurian Joseph and R.F. Nariman have asked the consortium of banks led by SBI to respond to the offer in a week’s time. The next hearing in the apex court is slated for April 7.

“The consortium of banks led by SBI confirms receipt of an offer for settlement of dues from Kingfisher Airlines Ltd. The bank, along with other consortium members, will examine the same,” SBI said in a statement on Wednesday.

[Source:- The Hindu]

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